I have a similar story.
Had two foreign rental properties.
Property 1 recorded passive income
Property 2 recorded passive losses greater than the income from property 1 so I carried forward suspended losses.
When I sold property 1 at a gain, can I use the total accrued suspended passive losses from property 2 to decrease the gain on property 1?
If not, what happens to all the accrued suspended passive losses when I then sold property 2 at a loss? Will those be subtracted from my regular W2 income and/or carried forward into the next year to reduce the next year's W2 income? Or will they be lost?
